125 Home Equity Loans

In the past, fixed home refinance loan rates enabled borrowers to get funds for debt consolidation and refinance loans to 125% to stop foreclosures. The no equity loan market has changed but there are still some opportunities to save money. Initially, the "125 home loan" was used primarily to consolidate high interest unsecured debt. The most popular high LTV today is the HARP refinance which is a rate and term loan for people with upside down mortgages. We provide several paths with our no equity home loans and our goal remains focused around reducing your monthly payments. Rates are incredible and our home equity loans could help you accomplish your financial goals. Discuss your needs with one of our loan officers today.

The 125 home equity program has unique guidelines compared to other 2nd liens and refinance loans. No equity loan programs require good credit scores and income that can be documented. At this time the 125 equity loan has been placed on hold. Many people have started migrating to FHA loans for debt consolidation. Refinancing with FHA is available with cash out from 85% to 95% and credit scores are not a qualifying factor! If no mortgage is available, then ask your loan professional about possible to help your credit card debt go away forever.

Compare 125 Loan Quotes on No Equity Loans for Refinancing

Breaking News: President Obama just announced that he is extending the Home Affordable Refinance Program to help underwater borrowers. If you are looking for a 125% loan you will be excited because the HARP program now has no loan to value restrictions. That means that no matter how much greater your mortgage is than your property's value, there are opportunities for mortgage refinance loans that are waiting for you. The HARP 2.0 does not even have any loan to value restrictions. Certain restrictions do apply, so talk with one of our consultants today if you are seeking a rate and term 125% equity loan.

No Equity is required with loans for cash out financing home improvements and refinancing high rate bills. Home equity loans provide first time homebuyers a method to finance home improvements without waiting years for their home to naturally appreciate. These simple interest loans are very unique. 125 loans are legendary finance tools that have helped thousands of homeowners consolidate bills and refinance adjustable rate loans. However today the 125 loan is only used as a "rate and term" option for refinancing underwater mortgages owned by Fannie Mae and Freddie Mac.

Our 125 home equity loans also help create opportunities for homeowners to consolidate adjustable rate debts into a fixed rate mortgage for increased "hard-dollar" savings. The "125 loan" has a long history of helping homeowners find better financial options for their debt and high interest mortgages.

After the housing crisis erupted, our government decided to expand regulations on lenders that advertise equity loans beyond the property's value. Under the 125% loan, a consumer can only deduct the interest up to 100% of the house's value. The interest above the home's value is not deductible.

If you can't find a mortgage lender to refinance you because your credit scores are low or you do not have enough equity do not lose hope. Many lenders are accepting home loan modifications and many banks are even forgiving past due balances. The FHA refinance and the Hope for Homeowners are not easy for the average borrower to qualify for, so don't give up and ask about our attorney backed loan modification options as alternative to refinancing or taking out a home equity loan to pay your bills. Debt settlement is another popular choice for credit card debt elimination if you are unable to get approved for a bad credit refinance loan.

Many new homeowners have incurred additional debt from charging new furniture to revolving credit cards. Credit card debt is the last thing that first time homebuyers need at a time when every dollar counts. No equity is needed to qualify for loans to 125%, but 700 credit scores are the minimum with the present secondary mortgage crisis.

The home refinance lenders we have partnered with are considering your credit as the collateral and more weight is put on your income to qualify for these high LTV 2nd mortgages. For example, if your 1st mortgage balance is $200,000, and your home is also worth $200,000, we can offer you a $50,000 home equity loan, even though you have no equity earned in your home.

Home Equity Loans can help you get your finances back on track!

Home Equity Loan Testimonial

The Dalton family bought a new home a few years ago in Fresno, California. After three months in the new home, they found themselves with $30,000 worth of credit card debt due to the need to make cosmetic home repairs and the cost of the purchasing new furniture. The Daltons found a great solution with the 125% home equity loan.

Since the housing market had been shaky in California they did not have enough equity to take out a traditional second mortgage, so they needed a loan that would enable them to exceed the value in their home and still offer enough cash to consolidate the variable interest that was compounding each month.

According to Mrs. Dalton, "the 125% loan gave us some breathing room because it took our four adjustable rate credit cards and rolled them into a fixed rate loan even though we had no equity. This loan helped us get control of our finances so the transition with our new home was eased significantly."

Consolidate Bills, Credit Cards & Debt with a Home Equity Loans to 125%.

The 125 loan allows consumers to exceed the appraised value and borrow an additional 25% worth of equity. The popularity of this no equity mortgage continues to rise, as the demand for debt consolidation continues to grow as well. Homeowners are able to pay off credit cards, installment loans, and unsecured loans as well.

What is the origin of 125% home loans?

Back in the mid 1990's lenders came up with a 2nd mortgage that allowed homeowners to go beyond the 100% threshold that had been the maximum for decades. Other than the Title 1 loans, the 125% home equity loan was the 1st mortgage that allowed borrowers to exceed the value of their home.

The Title 1 loans were limiting, because they were offered specifically for funding home improvement projects and they were limited to a maximum loan amount of $25,000. 125% home loans enabled borrowers to get larger loan amounts for debt consolidation as well as get additional cash out for home construction projects.

125% Home Loans Were Popular First Time Homeowners with no equity!

Home Equity Loans are now available with No Equity Required!

Useful Loan Tips from the 125% Home Equity Experts

Are you trying to refinance a mortgage with bad credit?Gone are the days of qualifying for a 125% home loan with low credit scores.

The amount of equity you have in your home is derived from the mortgage balances and your home’s appraised value.

"Loan to Value" is the term commonly used to describe the level of equity in your home. 125% LTV occurs when the 1st and 2nd mortgage exceed the home’s value.

Credit Scores play a crucial role in determining the interest rate you qualify for.

The higher your credit score the more options you will have at the best possible mortgage rate. Unfortunately the lower your credit score, usually the higher the rate.

Consider the type of interest rate for your 1st or 2nd mortgage. If you are refinancing debt then a fixed interest rate is recommended.

If you are financing home improvements then a variable rate may work best for a short term.

Do you ever consider home improvements, like adding a new deck?
Getting your roof replaced? Or remodeling the kitchen?

Defining a "125% Home Equity Loan" - (also called "No Equity Loan")

The 125% Home Equity Loan is a secure 2nd mortgage that disperses a lump sum of money at the time escrow funds the loan. Like the traditional home equity loan, the money is borrowed against home, but unlike the traditional loan, no equity is required. Because equity is taken out of the equation, credit and debt to income ratio become the driving factors for lending considerations. 125% equity loans are liens recorded in 2nd position on the deed to the title securing your home.

Payments are due monthly with terms of a fixed simple interest rate with a fixed amortization schedule. No annual fees with fixed rate home equity loans

Have you ever wished that you could get more than you home is worth through a 2nd mortgage? Well, you can. It's called a home equity loan to 125% loan. When you choose to obtain a home equity loan to 125%, you will receive a loan in the amount of 125% of your home's worth. You can use the extra money to pay off bills consolidate debt.

Usually, home equity rates are based on the Wall Street Journal Prime Rate as are Home Equity Lines of Credit to 125%. You can find this rate in the Money Rates section of the Wall Street Journal. In order to get this number, they keep tabs on the 30 largest banks, and when three-fourths of those banks change their interest rates, the Wall Street Journal publishes the new rate.

Sometimes, banks and lending agencies will work off different rates including the LIBOR Index, MTA Index, and Federal Reserve. For years, Alan Greenspan has been chairman of the Federal Reserve, controlling interest rates and trying to keep the market from crashing or housing bubbles from occurring.

Fixed or AdjustableYou have a couple of options when you get a 125% home equity loan. You can choose either a fixed or an adjustable interest rate. There are pros and cons to both "no equity loans", depending on the rate being used and whether it is currently high or low.

Fixed rates will lock you in at a specific rate for the life of your loan. Although you'll know up front exactly what you'll owe in interest, you may be stuck paying more if rates fall. On the other hand, adjustable interest rate loans generally offer a trial fixed rate for 1 to 5 years before transferring to the current rate at that time. For complete article Continue Here.

Linda's Helpful Hints for people who have No EquityAsk Linda?

People who don't have any equity in their home used to pout, when people would talk about getting cash out, or adding a pool, etc. Now those people can get cash out for home construction or bill consolidation with a 125% home equity loan.

What type of home equity loan is best for me?Equity Line of Credit?orFixed Rate Home Equity Loan?

Homeowners now have more financing options than you've ever had, so it's imperative that you choose the right home equity loan for reducing your monthly expenses. You need to find the right 2nd mortgage that offers the lowest rates, while offering the best long-term solution.

Many people are lured by the reduced payments of home equity credit lines, because only minimum payments that cover the interest are due. No portion of the minimum monthly payments goes towards paying down the principal of the loan. If you only pay the minimum payment of interest, then your balance could grow like a credit card. We suggest that if your goal is debt consolidation that you consider a fixed home equity loan.

Getting Ready for Refinancing a No Equity Home Loan

If you are gearing up to refinance your home equity loan, here are a few things you should have before you start the process. First, decide whether or not you are doing a "Stated Income" second mortgage or a Full Documentation loan. If you plan on doing a 125% home equity loan, then you will be required to provide full documentation, that will include 2 years of income documentation, current pay-stubs, note, mortgage statement, and info for homeowners insurance.

If you are going "Stated Income" loan, then you will not need income documentation or pay-stubs, but some loan programs will require you to document 3-6 months' worth of reserves. Each month of reserves will be measured as enough cash to cover the mortgage payment, property taxes, and hazard insurance. Ask your loan officer if the rate will be higher if you opt for the "Stated Income" loan.

Home equity loans from Nationwide Mortgage Loans, will take 2-3 weeks to close, in most cases. We suggest that you get your documentation ready, and fax it over to the loan officer as quick as possible. We also recommend that you review your loan disclosures with an advisor that you trust. It is important to ask your loan officer any question that for anything that you need clarification on (last 2 pay-stubs, last 2 years of W2's or 1099, mortgage statement, note, and homeowners insurance info).

What are my home equity financing options if our appraisal indicates that we have no equity? If you have no equity in the home, your loan options will be limited. However, Nationwide Mortgage Loans offers home equity loans up to 125% cltv of your home's appraised value. Credit score, mortgage history and debt to income ratio will also be factors in qualifying for a 125% home equity loan.

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"The loan officers at Nationwide were knowledgeable, friendly and helpful. We really liked the extra help addressing all of our financing questions and concerns. I look forward to sending my friends and family your way for refinancing!"– Jim and Janet T.

The cost of borrowing could be rising. Compare the current home equity interest rates and lock into a fixed rate loan that could potentially save you money.